Targeting 30-44 year old Consumers in UK Household Insurance 2003

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Insurance Consumers 3
Consumer Awareness 4
Consumer Purchasing Behavior 6
Customer Retention and Attrition 7
CHAPTER 2 INTRODUCTION 20
What is this report about? 20
A note on indexing 22
Who is the target reader? 22
How to use this report 22
CHAPTER 3 INSURANCE CONSUMERS 24
Introduction 24
Key findings 24
Insurance market context 26
Private motor drives personal insurance GWP 26
30-44 year olds in context 27
30-44 year old age group accounts for 22.6% of total population 27
30-49 year olds spend more on insurance products than any other age group 29
Household insurance consumers in context 31
Number of UK households heading towards 25 million 31
The majority of 30-44 year olds live in owner-occupied households 33
General insurance cover 35
Motor insurance is the most commonly held insurance type among 30-44 year olds 35
Key target for insurers is the £40,000-£49,999 income band 40
Married consumers have a greater tendency to be insured 42
Home ownership has a positive impact on likelihood of insurance ownership 44
CHAPTER 4 CONSUMER AWARENESS 46
Introduction 46
Key findings 46
Sources of information used to find an insurer 47
30-44 year old household insurance customers rely on previous dealings 47
Advertising spend by competitor 54
Household insurers keen on direct mail 54
Advertising awareness among 30-44 year olds 63
30-44 year olds are most aware of advertising by Churchill and Direct Line 63
Consumer brand awareness 77
Direct Line is the first name on 30-44 year old consumers’ lips 77
Direct Line is the most recognized direct household insurance brand 82
CHAPTER 5 CONSUMER PURCHASING BEHAVIOR 92
Introduction 92
Key findings 92
Selection criteria 92
30-44 year old household insurance customers seek cheapest quotes 93
Distribution channels and platforms used by 30-44 year old consumers 95
Mortgage providers play a role in household insurance purchase 96
Competitor shares of 30-44 year old consumers 106
Lloyds TSB is the leading provider of household insurance to 30-44 year olds 106
CHAPTER 6 CUSTOMER RETENTION AND ATTRITION 112
Introduction 112
Key findings 112
Customer switching among 30-44 year olds 112
30-44 year olds are most fickle household insurance customers 113
Attrition by competitor 116
Eagle Star has the least fickle 30-44 year old household insurance customers 117
Likelihood of shopping for alternative quotes amongst 30-44 year olds 118
30-44 year olds are a stable consumer segment in household insurance 118
Likelihood of competitors’ policyholders shopping around 124
Direct Line’s household insurance customers are the most unsettled 124
Number of quotes obtained by 30-44 year olds 126
30-44 year old consumers most likely to obtain four or five household quotes 126
Number of alternative quotes, by competitor 128
Bancassurance customers happiest not to shop around in household insurance 128
Customer satisfaction among 30-44 year olds 130
30-44 year olds are a particularly demanding age group in household insurance 130
CHAPTER 7 SUMMARY 132
30-44 year old consumer profile matrix 133
Key observations 134
CHAPTER 8 APPENDIX 135
Research methodology 135
MFS Financial Services (MFS) methodology and contacts 135
MFS survey data 137
Insurance Consumers 137
Consumer Awareness 138
Consumer Purchasing Behavior 146
Consumer Retention and Attrition 149
Definitions 150
Bibliography 151
Future readings 151
Do you need more information? 152
Datamonitor Financial Services Consulting 152
SPP writing team 153